River Island is planning to open new stores across the UK and Ireland after returning to profitability following a major restructuring that saw 33 shops close last year. The fashion retailer reported a pre-tax profit of £11.6 million for 2025, a sharp recovery from a loss of £124.3 million in 2024.
Restructuring and Recovery
In August 2024, River Island narrowly avoided administration by proposing a restructuring plan that included the closure of 33 high street stores and rent reductions of between 25% and 75% at 71 locations over three years. The company also brought in new management, focused on online sales and simplified operations.
Financial Results
The latest results show the strategy is working. Gross profit surged to £94.3 million in 2025, up 94.3% from £37 million the previous year. CEO Ben Lewis expressed optimism about the performance, stating he was "very pleased and optimistic" about the results.
Future Expansion
With the retailer firmly back in the black, Lewis confirmed that River Island is exploring options for selected new stores in the UK and Ireland this year, while continuing to focus on digital sales. He told Drapers: "2025 was a year of significant progress and transformation for River Island. We took decisive action to strengthen the business, improve profitability and create a more sustainable platform for future growth."
Operational Improvements
Lewis added: "The turnaround we have delivered is the result of a huge amount of hard work across the business. We improved product profitability, simplified the organisation, reduced costs and strengthened our operating model. While there is still more to do, these results demonstrate that our transformation plan is working and that River Island is moving forward from a much stronger position."
New Initiatives
River Island has also joined M&S's online marketplace alongside brands like Kurt Geiger and Phase Eight. The retailer has launched collaborations, including an exclusive collection with New York-based sportswear brand PONY. Lewis reminded customers who may have lost touch with the brand that "we are doing great designs now."
However, he noted that rising costs across the industry are putting pressure on the high street. "You either must manage these costs, or you must get the economy to grow," he said.
